DBA’s new mid-month communication is designed to keep members informed about the work that is taking place on their behalf, and remind you of important news and updates. This is a members-only publication so you need to login to view the content on the website.
Advocacy
DBA serves as the voice of the debt buying industry, representing members before federal and state agencies and in the courts. Here are some of the initiatives that we’ve undertaken in the last month:
Federal Activity
DBA Board Members and New York businessmen, Dave Paris and Irwin Kirschenbaum, will represent DBA at the Debt Collection Dialogue: A Conversation between Government and Business today, June 15th in Buffalo. The CFPB, FTC and the New York Attorney Generals office will be the panelists. DBA will provide members with a summary of highlights following the event. Similar events are scheduled to be held in Dallas (October) and Atlanta (November). Read more about the event.
On Thursday, June 18th, the FCC will meet to adopt proposed rules (exact language not available) regarding the calling of cell phones with auto dialers. The rules will have a major impact on the collection industry, as it is anticipated that they will prohibit debt collection calls from auto dialers. Download a fact sheet.
State Activity
• Legislatures in Session: 18
• Bills in Active Status: 73 out of 93
• DBA Retained Lobbyists: 5 (California, Maine, Michigan, New York, and Oregon)
• Active Negotiations: 6 (California, Maine, Michigan, New York, Oregon, and Rhode Island)
Top Bills in Active Negotiations in Prior 30 Days:
California SB 641 – Permits a debtor to serve and file a notice of motion to set aside a default judgment obtained by a debt buying company if the debtor claims the original summons did not result in actual notice to the debtor in time to defend the action. If granted by the court, the action would be retried by the court. The debtor would have 180 days from “first actual notice of the action” to make such a motion but otherwise contains no limitation on the time period from judgement. Bill passed Senate on May 22nd; DBA is leading an industry coalition effort in opposing bill with the goal of amending or stopping the bill in the Assembly.
District of Columbia Bill 190 – Comprehensive bill aimed at debt buyers based on California’s Fair Debt Buying Practices Act but with significant changes to litigation and penalty provisions which would make debt collection in the city of 646,000 residents (more populous than the states of Wyoming and Vermont) virtually impossible. DBA is actively monitoring the bill but believes committee action is unlikely in 2015.
Maine HB 753 (LD 1092) – This bill will: (1) require written payment schedules or settlement agreements be provided the consumer, (2) prohibit collection action when the debt is beyond the statute of limitations (SOL), (3) eliminate the “state law borrowing provision” and reaffirm the 6 year statute of limitations (SOL) on collection matters, and (4) prevent payments received after the expiration of SOL to revive or extend the limitations period. DBA was successful in our bill negotiations which resulted in a much narrower focus. The original bill would have established onerous requirements for debt buying companies to collect a debt, bring a lawsuit on a debt, and to obtain a judgment on a debt. The amendment removed “debt buyers” as the focus of the bill . . . the new provisions apply to all debt collectors.
Rhode Island HB 6158 – Require debt buyers to document whether they used statutory or contractual interest when obtaining a judgment and would allow consumers to vacate prior judgments if the plaintiff had not complied with the new standard. DBA was successful in holding the bill in committee.
Oregon HB 2252 – Adopts the following provisions specifically related to the debt buying industry: (1) prevents debt buying companies from attempting to collect on a debt without having over 25 specified data points and documents; (2) requires debt buying companies to provide specific data and documents to debtors in a 30 day notice prior to beginning legal action, with the complaint, and with the court prior to judgment; and (3) eliminates both the remedy and right to collect after the expiration of the statute of limitations. DBA had been in active bill negotiation on this proposal throughout the first half of the year resulting in significant progress towards a reasonable compromise designed to protect both consumer and business interests. The negotiations ceased and the bill died after consumer groups expressed their displeasure with the language that resulted from the negotiation process.
Oregon HB 3031 – Requires callers using an automatic dialing and announcing device to provide a method by which a subscriber, within the first 10 seconds after a call begins, may enter a single dual-tone multifrequency signal or otherwise enter or speak a one digit code to notify the caller that the subscriber does not want to receive any future calls from the caller. DBA was successful in getting the bill amended to expressly exempt “debt buyers” from the bill’s provisions.
STATE ATTORNEY GENERAL UPDATE
DBA’s AG consultant is scheduling meetings this summer with the consumer protection staff of several state Attorney General’s offices including Washington, New York and Connecticut. DBA will also be attending the Conference of Western Attorneys General annual conference which will provide meeting opportunities with over 30 AGs and their staffs. These meeting are designed to help educate regulators on the debt buying industry and DBA’s Certification Program.
Certification
Mandatory Debt Buying Company Certification Timeline: March 1, 2016 or within two years of membership in DBA International. Here’s what is needed to meet the deadline:
- Individual Certification of Chief Compliance Officer: Each company working toward their company certification needs at a minimum one (1) employee with the title or designated as the Chief Compliance Officer to obtain the individual Certified Receivables Compliance Professional (CRCP) designation. To achieve this certification, the individual must complete 24 hours of continuing education in the prior two (2) years from date of application. Individuals submit their application when they complete all 24 credits.
- Company Certification: Completing the company certification is the second or corresponding step in the process. You need to complete a self-audit of your company’s operations to confirm compliance with all Series A and Series B standards to obtain the Certified Professional Receivables Company (CPRC) designation for debt buying companies. When the self-audit is complete, you will submit your company application. An external audit will need to be performed upon your renewal in two (2) years after your company becomes initially certified.
Congratulations to our newly certified individuals:
» Kaye Dreifuerst, Security Credit Services
» Adam Elder, Portfolio America Asset Management, LLC
» Michael Lagana, Maryland Portfolios, Inc.
» Luis Lopez, Dalty Acquisitions, Inc.
View all certified companies and certified individuals on our website.
Court Decisions
The following are two noteworthy court decisions handed down in the past 30 days that may impact DBA members:
Collecting Interest – Usury
Madden v. Midland Funding, LLC, et al, Second Circuit Court of Appeals, May 22, 2015
The National Bank Act (NBA) permits credit card accounts originated by national banks to charge interest rates that exceed state usury rates. A recent opinion from the Second Court of Appeals held that when the same account is purchased by a debt buying company, it loses the NBA exemption and the account becomes subject to state usury law. Because, under this ruling, the debt buying company’s attempt to collect the original rate of interest violated New York’s usury law, the decision permits Madden to proceed with his claim that the practice violates the Fair Debt Collection Practices Act (FDCPA) and to seek class certification.
The decision poses significant risk to debt buying companies that continue to charge, post-purchase, the same rate of interest charged by originating national banks. Debt buying companies who collect debt within the Second Circuit (New York, Connecticut, Vermont and Puerto Rico) should evaluate their policies concerning collection of interest and make appropriate adjustments. The decision remains limited to the Second Circuit and is in conflict with two decisions from the Eighth Circuit Court of Appeals and trial courts throughout the country.
No Violation for Not Providing Tax Consequences of Debt Settlement
Altman v J.C. Christensen & Associates, Inc., Second Circuit Court of Appeals, May 24, 2015
A debt collector did not violate the FDCPA by not disclosing to a debtor the potential tax consequences arising from settlement of a debt. The debt collector’s letter offered two options to settle the debt at a discount and third option allowing the debt to be paid in full over time. The debtor alleged that by making the discount offers without disclosing to him the potential tax consequences, the letter was a false, deceptive or misleading representation or means to collect a debt. In affirming the trial court’s judgment dismissing the claim, the appellate court noted that the letter only stated the amount the debtor would save on the unpaid account balance and that undisclosed, potential tax consequences are not within the context of an “outstanding account balance.”
Education
DBA offers a robust lineup of educational programs for professional development and credits towards your individual Certified Receivables Compliance Professional (CRCP) designation.
- Upcoming Webinars: DBA’s next webinar, Managing Your Digital Reputation, is scheduled for Thursday, July 9, 2015.
- Webinar Package: This discounted package is currently available for webinars from May through December 2015. Members will receive eight (8) webinars for the price of seven (7) for $450.
- Recorded Webinars: If you missed a live webinar, they are all recorded and available on our website.
Executive Summit
Executive Summit early registration ends June 22, 2015 when rates will increase by $50. Space remains available for Tuesday, August 11th Golf event and Pre-Summit educational sessions. Review the Agenda, and Register NOW! Discounted room rates of $279 (with a cut-off date of July 18, 2015) are available. Make your room reservation today before the resort sells out!
Membership
Not getting your copy of DBA the Magazine?
Mailed in April and October each year, the highly anticipated DBA the Magazine keeps members informed on the latest industry developments and provides advice from successful industry insiders. If you have not received your copy in the mail, make sure your address is current by contacting Barbara Souza at [email protected], or calling (916) 482-2462.
Welcome New Members
(since May 15, 2015)
The DBA International membership continues to grow. Welcome to our newest members:
| Ballard Spahr LLP Chase Receivables Local Counsel Collective |
Michael Haynes & Associates N&S Partners Nationwide Recovery Systems |
Did you know that DBA members can search for other members on the Member Search page?
Weekly CFPB Updates
Have you read the latest news about the Consumer Financial Protection Bureau (CFPB)?
Every week, DBA posts updates on the actions and activities of the CFPB. Published by Arnall Golden Gregory LLC, these updates provide a summary of the CFPB activity each week. Or you can access the entire library of CFPB updates to find out about past actions that are likely to affect your business.
Public & Media Relations
DBA International proactively reaches out to financial reporters, bloggers and others who follow or write about the debt buying or receivables management industry to provide context and background to promote fair and accurate reporting. These fact sheets and white papers can also be used by DBA members when you need to communicate with media or other audiences.
» White Paper on the Debt Buying Industry
» Debt Collection and Consumer Rights
» DBA International Receivables Management Certification Program Overview
» The Role and Value of the Debt Buying Industry
Upcoming Industry Events
DBA International works to open new markets and promote the industry at various conferences and events throughout the year (you might have seen us there). In May, DBA participated on a panel, “Maximizing Recoveries and Mitigating Losses,” at the Buy Here Pay Here conference and a “Debt Buying: Selling in Today’s Environment” panel at the National Automotive Finance conference. These sessions are designed to encourage their members to sell their debt and educate them on how to go about a successful debt sale.
| DATE | EVENT/LOCATION |
| June 22-25 | NIADA Used Car Industry Convention & Expo – Las Vegas, NV |
| Aug.11-13 | DBA International Executive Summit – Park City, UT |
2015 Legislative Fund Contributors
Thank you to our 2015 Legislative Fund contributors. Your support allows us to influence threatening legislation, while also promoting and preserving the best interests of DBA members. Without contributions from committed DBA members, we could not continue pursuing these vital legislative efforts. Make your contribution today!
Diamond Contributors ($25,000)
PRA Group
Titanium Contributors ($15,000)
Cavalry Investments, LLC
Platinum Contributors ($10,000)
Credit Control, LLC
Gemini Capital Group, LLC
MSW Capital, LLC
National Loan Exchange, Inc.
Sherman Financial Group, LLC
Gold Contributors ($7,500)
Financial Recovery Services, Inc.
Silver Contributors ($5,000)
Garnet Capital Advisors, LLC
Javlin Capital, LLC
Bronze Contributors ($2,500)
Cascade Capital
JH Capital Group
Security Credit Services, LLC
TRAKAmerica
Brass Contributors ($1,000)
Bloomfield Financial Group, LLC
Credit One Bank N.A.
Halsted Financial
Jan Stieger
John K. Rossman
Law Offices of Ronald S. Canter
Machol & Johannes, LLC
Pressler & Pressler, LLP
RAzOR Capital
The Bureaus, Inc.
United Collection Bureau, Inc.
United Debt Holding, LLC
Warner Law Firm
Other Contributors
American Acceptance Company
Asset Management Group, LLC
Bayview Solutions LLC
Capital Alliance Financial
Chebat Portfolio Management, LLC
Compumail Information Systems
Crown Asset Management LLC
David Reid
Dynamic Recovery Solutions
EZ Messenger
General Bar Law Directory
Global Debt Registry
International Collection Services, LLC
InvestiNet, LLC
Jefferson Capital Systems, LLC
Miller and Steeno, P.C.
N & S Partners
National Debt Holdings LLC
Nationwide Debt Mgmt Solutions
New Century Financial Services, Inc.
North American Recovery
Real Time Resolutions, Inc.
Superlative RM
U.S. Equities Corp.